Barnes & Noble (BKS 7.00, +0.50) has climbed 7.7% after reporting better than expected results for the fourth quarter. Today's spike represents a small victory for a stock that has been trapped in a downtrend for the past two years, having slid from $17.00/per share in July 2015.
The bookseller reported a slimmer than expected fourth quarter loss of $0.19 per share on a 6.4% year-over-year decline in revenue to $821 million, which was ahead of market expectations.
Comparable store sales declined 6.3% during the fourth quarter, which matched the full-year rate of decline. Online sales increased 2.9% for the quarter, trailing the full-year growth rate of 3.7%.
Retail operations generated an operating loss of $15.90 million while NOOK operating loss totaled $7.90 million.
Full year consolidated earnings before interest, taxes, depreciation, and amortization improved to $172.20 million from $150.50 million one year ago.
Barnes & Noble CEO Demos Parneros noted that the company reduced its costs by $137 million during the full year. During fiscal year 2018, the company plans to improve overall returns and reignite sales through a test and learn process and company-wide simplification aimed at reducing costs.
The company expects that comparable bookstore sales will show a low-single digit decline for fiscal year 2018. Consolidated earnings before interest, taxes, depreciation, and amortization are expected to hit $180 million for the fiscal year.